The Application of Income Approach in Property Valuation in Poland

Trojanek, Maria

doi:10.14254/2071-789x.2010/3-2/4

Cited by 7 publications

(4 citation statements)

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“…The income value method is widely used not only for estimating the value of a business but also for assessing the value generated by different assets, including real estate (Trojanek, 2010;Tamošiūnienė & Paškevičienė, 2016). Within the framework of this study, the income value method is used to assess the efficiency of PREM through the perspective of financial achievement from the lease income obtained through leasing public property to other entities.…”

Section: Methodsmentioning

confidence: 99%

Efficiency and Challenges in Public Real Estate Management: Insights From Lithuania

Cohen,

Bereznauskė,

Burinskas

et al. 2023

International Journal of Strategic Property Management

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Public real estate is considered an integral part of national wealth. It generates a wide range of economic activities that contribute to creating and providing common public goods. This study examines the efficiency of public real estate management in Lithuania. Our findings show that public property use, disposal, and management strongly depend on the managerial approach. We apply data envelopment analysis (DEA) in addition to the income value, regression, and correlation methods. We find that there are certain biases present due to the exclusion of some state-owned properties from the public register. Furthermore, we identify the need for greater precision in the indicators used for financial reporting of state-owned assets. The excessive number of vacant asset units poses a challenge, as it requires substantial maintenance expenditures. Moreover, the appraisal of alternative use of these assets is lacking, thereby limiting the potential for maximizing public benefits. Our analysis reveals that the rental price per 1 m2 and the residual value of the leased premises are the most critical determinants influencing the management efficiency of publicly owned property. Furthermore, it is evident that the residential property is the only type of state-owned property managed efficiently within the Lithuanian public sector. These findings underscore the importance of formation of robust public real estate policies.

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Section: Methodsmentioning

confidence: 99%

Efficiency and Challenges in Public Real Estate Management: Insights From Lithuania

Cohen,

Bereznauskė,

Burinskas

et al. 2023

International Journal of Strategic Property Management

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“…In the business evaluation, the sales comparative method is commonly used. Another important technique is the income method, focused on investment and profits aspects of the house value (Trojanek, 2010).…”

Section: Methodology Methodology In Housing Evaluationmentioning

confidence: 99%

An Empirical Investigation of the Portuguese Housing Prices (2004-18)

Luo

Pereira

Dias

2020

J. Rev. Global Econ.

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This article presents an integrated macro view of the Portuguese housing market with macroeconomic indicators. Firstly, it compares the housing market and several macroeconomic indicators from 2004 to 2018. Then, the dynamic analysis of the housing prices by different regions in Portugal and its typology included. Also, the article is complemented with the regression analysis to identify the relationship between the house prices and macroeconomic indicators. Results show that the current negative interest rates are increasing the demand for houses and the housing prices. The housing stock in Portugal is mostly fixed but may experience limited growth as the rebuild program and new constructions. GDP and the housing prices have a positive correlation. Houses in Algarve and Lisbon are markedly more expensive than in the interior. From the regression analysis, the unemployment rate is the closest correlated variable.

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“…Various property evaluation methods are commonly used: the comparative method, which is the most frequently used (Rebelo 2002, Alcázar Molina 2003, Pagourtzi et al 2003, Nebreda et al 2006, the cost method (Barlowe 1986), and the income method (Alcázar Molina 2003, Trojanek 2010). In the real estate appraisal, the income method evaluates lease agreements (Alcázar Molina 2003) and it verifies the configuration of rents, vacancy rates and the lease duration (Deng et al 2003).…”

Section: Introductionmentioning

confidence: 99%

Rental Income and Cap Rates: A Comparison of the Lisbon and Porto Housing Markets

Moreira¹,

Tavares²,

Pereira³

2020

JURA

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The goal of this article is to analyse the relationship between rental income and capitalisation rates when real estate value is assessed in parishes of the Lisbon and Porto municipalities. Based on housing market values in euros per square metre during the 2006-2009 period, the income approach was used to compare the two main types of apartments (i.e. B2, or two-bedroom, and B1, or one-bedroom) in Lisbon and Porto. We used the capital asset pricing model to calculate the risk measure. The cluster analysis was used to group the Lisbon and Porto parishes according to their rental income and capitalisation rates. Regressions were used to model both geographical markets. Clear differences were found between Porto and Lisbon, the results being more robust for the Porto municipality in regard to B2 apartments. Moreover, rental income is inversely proportional to capitalisation rates for B1 apartments for Porto parishes, which means that there is an initial overinvestment.

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The Application of Income Approach in Property Valuation in Poland

Cited by 7 publications

References 0 publications

Efficiency and Challenges in Public Real Estate Management: Insights From Lithuania

Efficiency and Challenges in Public Real Estate Management: Insights From Lithuania

An Empirical Investigation of the Portuguese Housing Prices (2004-18)

Rental Income and Cap Rates: A Comparison of the Lisbon and Porto Housing Markets

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